Prime Minister Christopher Luxon has hailed a “breakthrough” with India on his visit to New Delhi as both nations agree to commence free trade negotiations, marking a significant milestone after a decade-long hiatus.
The news comes as a welcome relief to Luxon, who made a bold promise before the election to secure a trade deal with India within his first term in office.
However, the road ahead may pose challenges, with key issues such as the dairy industry having impeded progress in the past.
“It’s a major victory for New Zealand,” Luxon stated. “This marks the beginning of a breakthrough economic agenda.”
Luxon made these remarks after landing in India aboard the Defence Force 757, where he was greeted with a vibrant cultural performance by traditional dancers.
The announcement was made by the Indian government following discussions between Trade Minister Todd McClay and his Indian counterpart.
“We are committed to working diligently to reach an agreement that benefits both parties,” McClay affirmed, standing alongside Luxon. “The real work begins now.”
Previous trade negotiations from 2011 to 2015 failed to materialize, with dairy issues proving to be a major stumbling block.
Addressing the challenge, Luxon expressed confidence in the negotiations, which are set to commence next month with a fresh perspective.
“We initiated this process because we believe that through collective effort, we can achieve positive outcomes,” Luxon explained.
Trade expert Biswajit Dhar advised New Zealand to focus on sectors other than dairy initially before tackling the contentious issue.
Both Luxon and McClay refrained from commenting on potential compromises on the dairy sector, deferring the details to the negotiators.
Luxon’s itinerary in India includes meetings with top officials, including Prime Minister Narendra Modi, and participating in the prestigious Raisina Dialogue conference.
The Prime Minister underscored the importance of strengthening ties with India, a key global player with a rapidly growing economy.
Luxon also addressed New Zealand’s involvement in the “Coalition of the Willing” talks, emphasizing the focus on diplomatic efforts to secure peace in Ukraine.
“We are closely monitoring the situation and will make decisions through a thorough Cabinet process,” Luxon stated.
The virtual call, led by British Prime Minister Sir Keir Starmer, aimed to rally support for a 30-day ceasefire in Ukraine, with around 30 countries participating in the discussion.
